MADISON, Wis. (6/20/14)--Banks may often seem oblivious to the enmity they stir up with consumers. But a new report indicates they are at least aware of the impact that a bad reputation may have on their bottom lines.
More than 80% of communications, marketing and investor relations managers at banks, brokerages and other financial services firms said that they think the financial crisis of 2008 is still having a negative impact on their companies, according a survey of banking executives at 225 companies. The survey was done for the public relations and communications firm Makovsky by market researcher Ebiquity and reported by CNNMoney this week.
Those reputation problems have cost banks an estimated 27% in revenue over the past two years, according to Scott Tangney, executive vice president of Makovsky.
But the banks aren't accepting the responsibility for their bad rep. About 55% of the executives surveyed thought regulatory actions, fines and lawsuits were hurting the industry's reputation. State attorneys general and federal regulators continue to go after the industry, keeping banks in the headlines for all the wrong reasons, banks claim.
Still, more than 60% of survey respondents said that improving both customer and employee satisfaction would be a "very important" step towards improving the reputation of banks.
Financial services firms with Wall Street exposure have the most to prove to consumers, Tangney said. JPMorgan Chase, Bank of America and Citigroup have suffered the biggest hits to their reputations in recent years. All have faced multi-billion dollar settlements tied to less-than-reputable banking practices.